France: Is it a good idea to abandon the strategy of supporting companies and to instead start supporting consumers?

At his press conference on 25 April, president Macron clearly announced a change of strategy, from supporting companies (reduction in social contributions, corporate tax rate cuts, labour market reforms, cuts in taxes on capital) , which started in 2017, to boosting purchasing power (tax cut for households following the increase in the activity bonus and the reduction in social contributions, r e- indexation of pensions, tax-exempt year-end premium, etc. ). Is it efficient in the present situation to switch from a strategy of supporting companies to a strategy to supporting consumers? We do not believe so . The reasons are as follows: Supply side problems are still evident (low skills and hiring difficulties, low productivity gains, falling industrial production capacity); Corporate profitability is not completely restored, the corporate tax burden remains very high. Stimulating demand: Therefore deprives the stimulation of supply of any possible available fiscal leeway; May be rather ineffective in stimulating activity if supply constraints are significant.